Lack of money, fear of risk and educational gaps keep Romanians away from the investment market and make them vulnerable to financial fraud, according to two exclusive surveys conducted at the request of XTB Romania.
"For most people, a monthly wage means survival from paycheck to paycheck and can rarely represent a chance to save or invest. Lack of money, fear of risk and educational gaps keep Romanians away from the investment market and make them vulnerable to financial fraud," XTB said in a press statement.
According to the conclusions drawn from the survey conducted by Reveal Marketing Research commissioned by XTB, almost half of those surveyed (45%) believe that "working for money" means survival from one month to the next, while a third of them (33%) equate it with financial stability. Only 19% of people see in this phrase the possibility of saving and 4% the possibility of investing.
Regarding the gender ratio, it is observed that women in particular say that work is associated with "survival from paycheck to paycheck" and with "stability", while men consider that work helps them save or invest.
"These results are not only statistics, but also an alarm signal, because they show how much Romanians need financial stability and confidence in their own decisions related to money. It is a signal that a serious discussion must be started about how we can turn money from a survival resource into a tool for safety. Money must not only be earned and spent, but also put to work to build the future," general manager of XTB Romania Irina Cristescu is quoted as saying in the statement.
At the same time, the survey shows that people are not satisfied with the pay they receive, when judged against the effort made daily at work. Only four in ten Romanians believe that their pay really reflects their work (41%), while almost half of them believe that the income received only partially covers their effort. Also, 12% of respondents consider that their work is paid below their level of effort.
This situation is also reflected in the way the remaining money is managed at the end of the month. Over a quarter of Romanians (33%) are unable to put anything aside after paying their monthly bills and expenses, and only one in ten turn savings into investments. while 39% of respondents, especially young people between the ages of 18 and 24, said they invest unspent funds.
The findings of the survey also show that misperceptions and lack of information play an important role, because only four in ten Romanians believe that investments are possible only on large amounts, of over RON 5,000. At the same time, 6% of respondents believe that they should not invest at all.
Asked how they would use RON 5,000 if they received the money, almost half of the respondents (48%) said they would choose to keep it close, in their account or at home. Only 19%, or almost two in ten, would take the step towards investments, and 12% would spend them on various goods or holidays. At the same time, 3% of people would pay off their debts with RON 5,000.
In terms of preference for investments or savings, people said they prefer options that they perceive as safe or tangible. Specifically, real estate (40%) and bank deposits (39%) dominate the ranking. The list continues with gold (32%), stock market investments (18%) and cryptocurrency investments (8%).
At the same time, lack of money (60% of respondents), fear of risk (25%) and lack of information (10%) are the main barriers that prevent people from investing, while 4% of respondents say they don't have time.
On the other hand, the absence of financial education, and also of a long-term strategy, turns people into naďve victims of financial fraud, according to the survey conducted by iSense commissioned by XTB Romania.
Seven in ten Romanians (67%) have been approached at least once by people who promised them quick wins, and almost three in ten have lost money to financial fraud.
Given the circumstances, banks and the state are considered by respondents as the safest establishments for protecting money, while only two in ten Romanians regard investment platforms as reliable.
In addition, almost 60% of respondents say they have heard about investment platforms but admit that they do not understand how they work. Only 33% (especially men) said they know what investments entail and understand the mechanism.
"Financial fraud occurs where information and trust are lacking. The fact that almost nine in ten Romanians have lost money to such practices shows the real dimension of the problem. It is essential to understand that promises of quick win always come with hidden risks. Trust is hard to earn, and people need to know that their money is safe only when they choose transparent and responsible partners," added Cristescu.
XTB enables people around the world to put their money to work smarter and safer. The XTB app helps more than 1.7 million investors achieve their financial goals. With XTB, clients can invest in holding stocks and ETFs, create custom Investment Plans, and trade CFDs on indices, currencies, commodities, and cryptocurrencies. In addition, they can earn interest on uninvested funds and manage online and in-store payments, as well as ATM withdrawals in 19 currencies, using the XTB eWallet service.
The XTB app is a top destination for investment, market analysis and education. Founded in 2004 in Poland, XTB is a technology-based company regulated by several authorities around the world. Since 2016, XTB shares have been traded on the Warsaw Stock Exchange.
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